Potential For Loan Forgiveness Due to School Closure
Sanford Brown, Closes Down
Sanford-Brown College has announced the decision to close all of their schools, and have stopped enrolling new students. Parent company the Career Education Corporation (CEC) said they will shift focus to their online universities, Colorado Technical University and American InterContinental University. Sanford-Brown College will undergo a “teach out” with current students until they graduate. The colleges are gradually discontinuing operations and program; the process is expected to take anywhere from 18 months to about 3 years to complete.
Chairman and interim CEO of CEC, Ron McCray, blamed the decision on financial losses, declining enrollment numbers, and harsh regulations implemented on for-profit colleges. Last fall, the Department of Education announced new “gainful employment” regulations, which base a college’s access to federal loans on whether the estimated loan payment of a typical graduate exceeds 20% of the borrower’s discretionary income, or 8% of total income. According to the DOE, programs that exceed the aforementioned thresholds are at risk of losing their ability to access funding from federal student loan programs. Ron McCray attributes the new regulations as a factor in the decision. “The unfortunate reality is that a more difficult higher education marketplace and challenging regulatory environment have handicapped our ability to turn these institutions around quickly and operate these programs effectively long-term,” he stated. In recent news, a lawsuit filed by former students against Sanford Brown will move forward, even though the school’s enrollment agreement has an arbitration clause that takes away students’ right to file such lawsuits. For-profit colleges have been a target of the Obama administration as the government attempts to gain control over the rising student loan debt epidemic.
If you attended Sanford-Brown, you may qualify for federal student loan forgiveness. In order to see if you qualify, you need to create an FSA ID, and then call us at (800) 940-8911. Your FSA ID is used to confirm your identity when accessing your financial aid information. The FSA ID replaces the Federal Student Aid PIN. If you already have a PIN, you can link your information to your new FSA ID by entering your PIN while registering for your FSA ID. (This will save you time when registering for your FSA ID.) However, a PIN is not required to create an FSA ID.
If you run into any issues obtaining your FSA ID, one of our representatives would be happy to assist you. After you have obtained your FSA ID, give us a call at (800) 940-8911 to see which forgiveness program you qualify for.
STUDENT LOAN FORGIVENESS
Student loan debt has reached an all-time high, and according to the Consumer Financial Protection Bureau, the total amounts to around $1.4 trillion. Goodbye Loans can help determine if you qualify for the student loan forgiveness as a result of the lawsuit against Sanford Brown.
Goodbye Loans matches thousands of graduates with federal programs that are offered by The Department of Education to consolidate and lower their current Federal student loans. We help you take advantage of the latest regulations put in place by Congress and President Obama and potentially save thousands of dollars. Debt is hard to ignore. When you’re staring down a ballooning credit card balance and fending off insistent phone calls from angry creditors, it can be an all-consuming enemy.